Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — J.P. Morgan Ultimate Services Investor Conference 2017

22 slides from Intercontinental Exchange's conference presentation, Nov 14, 2017

  1. Slide 1: Intercontinental Exchange Investor Presentation

    INTERCONTINENTAL EXCHANGE INVESTOR PRESENTATION NOVEMBER 14TH, 2017

  2. Slide 2: Forward-Looking Statements and Legends

    Forward-Looking Statements and Legends CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding ICE’s business that ar

  3. Slide 3: Leading Global Market Infrastructure Provider

    Leading Global Market Infrastructure Provider A Virtuous Cycle Deeply Ingraining ICE Products & Services Across Workflows  World’s deepest and broadest source of proprietary data Data  Mission critical data & delivery for pre-trade workflows across all asset classes  Trade & manage risk across 12

  4. Slide 4: Consistent Growth Driven by Innovation and Execution

    Consistent Growth Driven by Innovation and Execution ICE Consolidated Net Revenues Adjusted EPS $4.5B(1) $2.78(2) $2.43(2) $3.5B(1) $2.22(2) $3.3B(1) $3.1B(1) $1.92(2) $1.68(2) $1.50 $1.38 $1.07 $1.6B(1) $1.4B $0.83$0.85 $1.3B $1.1B $0.68 $1.0B $0.8B $0.48 $0.6B $0.3B YTD17 2006 2007 2008 2009 2010

  5. Slide 5: Over Half of Revenues Are Recurring in Nature

    Over Half of Revenues Are Recurring in Nature Other 54% 4% Recurring Exchange Data Revenues Financials 12% 17% YTD17 Pricing & Analytics $3.5B 21% +5% y/y (1) Commodities Desktop & 25% Connectivity 12% Listings 9% Serving a diversified group of global customers across the front, middle and back offi

  6. Slide 6: Operating Margins Distinguish ICE From its Peers

    Operating Margins Distinguish ICE From its Peers ▪ Revenue growth at high-incremental margins delivers strong profit and cash flow growth ▪ Integration, execution, and innovative technology platform supports cost-efficient business expansion YTD17 Operating Margins Total Company Trading & Clearing D

  7. Slide 7: Strong Cash Flow Allocated in a Disciplined Manner

    Strong Cash Flow Allocated in a Disciplined Manner Capital Allocation Philosophy  Invest in differentiated assets internally and through strategic M&A Strategic  Deliver synergies and manage expenses to enable margin expansion Growth  Leverage ratio target ~2x debt-to-adjusted EBITDA to maintain

  8. Slide 8: ICE's Data Solutions Align With Secular Demand Drivers

    ICE’s Data Solutions Align With Secular Demand Drivers Growth Drivers ICE Data Services Solutions Feeds Covering 450+ Trading Venues, Rising Market Automation Low Latency Connectivity & Colocation, Index Services, Continuous Evaluated Pricing Clients receive consolidated real-time exchange data and

  9. Slide 9: Comprehensive Proprietary Data Services

    Comprehensive Proprietary Data Services ICE Data Services Revenue  In YTD 17, data revenues were 45% of consolidated $1,978 revenues, increasing ICE’s recurring revenue streams $2,000 ($M) $1,845(2)  Positioned in key growth areas: Global risk management and tech infrastructure solutions across Pr

  10. Slide 10: Growth and Opportunity Across Global Data Services

    Growth and Opportunity Across Global Data Services ▪ Data revenue expected to grow 6% in CC(1) for FY 2017; continued confidence in long-term growth objective ▪ Annual subscription value, or ASV, +6%(2) y/y entering 4Q AMERICAS(3) EMEA APAC 74% of 3Q17 data revenue 22% of 3Q17 data revenue 4% of 3Q1

  11. Slide 11: Leading Futures Exchanges – Local Presence; Global Distribution

    Leading Futures Exchanges – Local Presence; Global Distribution Diverse exchange traded markets create strong platform for customer growth, new product development and efficiency  Listing 10,000+ Futures & Options Contracts • Brent & WTI crude oil markets, plus 400+ oil cracks and spreads • Global

  12. Slide 12: ICE Clearing Serves Customers Globally with Local Operations

    ICE Clearing Serves Customers Globally with Local Operations Global Flexibility Capital Efficiency Product Innovation  6 clearing houses in 5 countries  Strong default risk protection  Multi-asset clearing  Operating across time zones &  Cross margining  Over 3,000 products cleared regulatory

  13. Slide 13: NYSE 3-Year Transformation is Driving Value Creation

    NYSE 3-Year Transformation is Driving Value Creation Successful integration has doubled free cash flow which funds organic growth initiatives, strategic M&A and capital returns Successful Integration and Ongoing NYSE Listings & Trading Revenues Since 2013 Acquisition Transformation ($M) $740  Deliv

  14. Slide 14: Model Supports Long-Term Double Digit EPS Growth Target

    Model Supports Long-Term Double Digit EPS Growth Target Data revenue model: Revenues mid to high single digits Assumptions Trading & Clearing M&A & • Stable economic environment revenue growth driven Other New ~ 10% • Stable currency environment by: Products ~ 20% 0 • Stable regulatory environment 0

  15. Slide 15: Consistent Track Record of Growth

    Consistent Track Record of Growth YTD September Highlights Net revenues +5% y/y(2) Adjusted EPS (1) Data revenue +7% y/y(2) (1) ADV +15% y/y, OI +14% y/y (1) Adj. EPS +7% y/y(1) (1) (1) $2.07 (1) (1) Adjusted figures represent non-GAAP measures. Please refer to slides in the appendix for reconciliat

  16. Slide 16: Appendix

    APPENDIX INTERCONTINENTAL EXCHANGE 16

  17. Slide 17: 2017 Guidance

    2017 Guidance Metric 2017 Guidance Data Revenue  6%(1); constant currency  4Q17: $475 - $485 million(2) Adj. Expenses  Expense Synergies: at least $70 million in 2017  Interest Expense: $50 million 4Q17 Other Income  Effective Tax Rate: 30-32% 4Q17 Statement  4Q Weighted Average Shares Outstan

  18. Slide 18: Recent Strategic Investments Enhance Content and Distribution

    Recent Strategic Investments Enhance Content and Distribution BondPoint ▪ Expands fixed income market BofAML Indices solutions to all-to-all platform Data ▪ ICE now the #2 fixed income index ▪ Engage new client segments provider with over $1 trillion of ▪ Leverage pricing, reference data AUM benchma

  19. Slide 19: Adjusted Net Income Attributable to ICE and EPS

    Adjusted Net Income Attributable to ICE and EPS 9 Months 9 Months 3 Months 3 Months Ended Ended In millions (except per share amounts) Ended 9/30/17 Ended 9/30/16 9/30/2017 9/30/2016 Net income attributable to ICE $369 $344 $1,289 $1,070 Add: Interactive Data and NYSE transaction and integration cos

  20. Slide 20: Adjusted Net Income Attributable to ICE and EPS

    Adjusted Net Income Attributable to ICE and EPS 12 Months 12 Months 12 Months 12 Months In millions (except per share amounts) Ended 12/31/16 Ended 12/31/15 Ended 12/31/14 Ended 12/31/13 Net income attributable to ICE $1,422 $1,274 $981 $254 Add: Interactive Data and NYSE transaction and integration

  21. Slide 21: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation

    Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation Trading and Data and Listings In millions Clearing Segment Segment Consolidated Three Months Three Months Three Months Ended Sept. 30, Ended Sept. 30, Ended Sept. 30, 2017 2016 2017 2016 2017 2016 Total revenues, less tra

  22. Slide 22: Pro Forma Liffe Statistics

    Pro Forma Liffe Statistics (lots in thousands) Pro Forma Liffe ADV 2007 2008 2009 2010 2011 2012 2013 Euribor 1,184 1,341 1,301 1,512 1,499 1,057 1,396 Sterling 685 690 602 620 580 520 653 Other Rates 162 135 118 145 170 176 195 Total Rates 2,031 2,166 2,021 2,277 2,249 1,754 2,245 Sugar 8 7 7 7 6 7

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